{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-10T05:40:26-04:00", "answer_date": "2024-06-10 05:40:26", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2570531", "url": "\/study-help\/questions\/assume-that-in-the-original-ityesi-example-in-table-2570531", "question_creation_date_js": "2024-06-10T05:40:26-04:00", "question_creation_date": "Jun 10, 2024 05:40 AM", "meta_title": "[Solved] Assume that in the original Ityesi exampl | SolutionInn", "meta_description": "Answer of - Assume that in the original Ityesi example in Table , all sales actually occur in the United States and are projected | SolutionInn", "meta_keywords": "assume,original,ityesi,table,sales,occur,united,states,projected,$60.0,million,per", "question_title_h1": "Assume that in the original Ityesi example in Table , all sales actually occur in the United States and are projected to be $60.0 million", "question_title": "Assume that in the original Ityesi example in Table , all sales", "question_title_for_js_snippet": "Assume that in the original Ityesi example in Table , all sales actually occur in the United States and are projected to be $60 0 million per year for four years Keeping other costs thesame, calculate the NPV of the investment opportunity Assume the WACC is 6 8 The forward exchange rates are given below Assume that in me nngmal llyesl example iii Ianle a all sales attually accur innie United Hales and aie prsieciea m be 550,0 iiiiIIieii per yea mi oui years, Keeping om nsls me same camulae me NW at me Investment oppmm nity Assume me WAGE is 5 5 The larwald exchange iaies aie given helm Yea I 'l 2 3 I Forward Exchange Rate (WE) 1,6000 1 5551 15) i5 1 4692 1,4280 Calcualte me cash aws below Rmmd m miee decimai places Forward exchange i219 must be miinded ID uni decimal places ) Year 0 a Data Table Free cash aw (miHans gr puunds) Faiwani exchange rate Free cash Haw (mEUOnS gr dullars 5316 m the US WHOM manna ) TAB LE 31 1 Expected Foreign Free Cash Flows from Ityesi's U K Fmiect S P R E AD 3 H E ET Cash (law (milluns at dnars) Year I 2 4 lncmmantll Earnings Forecast E millions) 1 Sa les 7 37 500 37 500 37 500 371500 Cost at Goods Sold (15 625) (15 625) (15 625) (15 625) Gross meit 7 21 875 21 E75 21 875 11 875 Opsratmg Expenses 44 167) 5 625) (5 625) (5 625) 5 625) Damecialion 7 3 750) (3 750) (3 750) (3 750) EBIT (4 167) 12 500 12 500 12 500 12 500 Incnme tax at 40 1 667 (5 000 (5,000) (5,000) 5 000) Unlevered Net Income (2 500) 7500 7 500 7 500 1500 a Cash Flaw Plus Depreciation 7 3 750 3 750 3 750 L355 Capal Expenditures (15 000) 7 7 7 Less Increases in NWC 7 7 7 7 Pound Frle Cash Flow (17 500) wi'wimmhuh 5 KS", "question_description": "\"image

Assume that in the original Ityesi example in Table<\/span>, <\/span>all sales actually occur in the United States and are projected to be <\/span>$60.0<\/span> <\/span>million per year for four years. Keeping other costs thesame, calculate the NPV of the investment opportunity. Assume the WACC is <\/span>6.8%<\/span>. <\/span>The forward exchange rates are given below.<\/span><\/p>

<\/span><\/span><\/p>

\"image<\/div><\/div><\/div> Assume that in me nngmal llyesl example iii Ianle a _ all sales attually accur innie United Hales and aie prsieciea m be 550,0 iiiiIIieii per yea! mi oui years, Keeping om :nsls me same. camulae me NW at me Investment oppmm nity Assume me WAGE is 5 5% The larwald exchange iaies aie given helm: Yea! [I 'l 2 3 I Forward Exchange Rate (WE) 1,6000 1 5551 15) i5 1 4692 1,4280 Calcualte me cash aws below [Rmmd m miee decimai places Forward exchange i219; must be miinded ID uni decimal places ) Year 0 a Data Table Free cash aw (miHans gr puunds) Faiwani exchange rate Free cash Haw (mEUOnS gr dullars] 5316 m the US WHOM manna\\\") TAB LE 31 .1 Expected Foreign Free Cash Flows from Ityesi's U.K. Fmiect S P R E AD 3 H E ET Cash (law (milluns at dnars) Year I] 2 4 lncmmantll Earnings Forecast [E millions) 1 Sa les 7 37.500 37. 500 37 500 371500 Cost at Goods Sold (15.625) (15.625) (15.625) (15.625) Gross meit 7 21.875 21.E75 21.875 11.875 Opsratmg Expenses 44.167) [5.625) (5.625) (5.625) {5.625) Damecialion 7 [3.750) (3.750) (3.750) (3.750) EBIT (4.167) 12.500 12.500 12.500 12.500 Incnme tax at 40% 1.667 (5.000: (5,000) (5,000) [5.000) Unlevered Net Income (2.500) 7500 7.500 7.500 1500 a Cash Flaw Plus: Depreciation 7 3.750 3.750 3.750 L355: Capal Expenditures (15.000) 7 7 7 Less; Increases in NWC 7 7 7 7 Pound Frle Cash Flow (17.500) wi'wimmhuh} =5 KS", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "3540737499", "uri": "\/textbooks\/principal-manifolds-for-data-visualization-and-dimension-reduction-2008-edition-978-3540737490-159671", "name": "Principal Manifolds For Data Visualization And Dimension Reduction", "edition": "2008 Edition" }, "question_posted": "2024-06-10 05:40:26", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/predict-the-order-of-magnitude-of-the-isotope-effect-on", "description": "Predict the order of magnitude of the isotope effect on the relative rates of displacement of (a) IH and 3H, (b) 160 and ISO. Will raising the temperature enhance the difference? 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